Delinquencies list

Koehle, co-coordinator of the East Bayfront Neighborhood Watch, said he expects others to do the same, on time, even after the city increased garbage fees by nearly 15 percent to help balance its 2014 budget.

When people don't pay, Koehle said, the city of Erie should aggressively go after that delinquent revenue -- especially when those overdue bills represent millions of dollars.

"I just don't understand why in this day and age it's so hard to collect this money," said Koehle, 55, who lives in the 200 block of East Second Street.

Koehle said he follows the issue because many delinquent customers are landlords with multiple rental properties in his and other city neighborhoods.

"This has been going on for a long time and the city has had years to work on this issue," Koehle continued. "The people who aren't paying are making a conscious decision not to pay, while the rest of us pay our bills. That part is galling to me."

The Erie Times-News examined the issue of delinquent garbage fees in 2010. At that time, overdue garbage payments and penalties totaled $1.16 million, according to Erie Water Works, which took over billing for the city in 2006.

As of Dec. 31, that total was nearly $1.6 million, according to the Water Works, which means overdue payments/penalties have increased 38 percent since 2010.

Further, when you include municipal liens totaling more than $930,000 filed against scores of other delinquent customers/accounts, the total delinquency amount swells to about $2.5 million, said Paul Vojtek, the Erie Water Works' chief executive.

Many of the overdue accounts go back more than a decade, with many individual customers owing thousands of dollars each. In one case, Water Works records show, a customer owes more than $26,000 on multiple rental properties.

Exploring options

Erie City Councilwoman Jessica Horan-Kunco said neither council nor Mayor Joe Sinnott's administration has done enough in recent years to curb the delinquencies -- and that needs to change in 2014.

Horan-Kunco is the new chairwoman of council's Finance Committee. She said finding solutions to the garbage delinquencies is a top City Council priority.

The issue will likely be the top agenda item at council's first Finance Committee meeting of the year on Feb. 5.

"We have to do the research on what options are available to us with the delinquent bills, from a legal standpoint," Horan-Kunco said. "What have other municipalities experienced? What has worked elsewhere?"

"There wasn't more of a push to do it before because it's work. It's not going to be a quick fix," Horan-Kunco said. "But we know doing it the way we've been doing it is not effective, and not an answer."

Horan-Kunco said she wants to explore options like hiring a collection agency to go after the delinquent revenue and rolling garbage payments into a property owners' yearly tax bill.

Sinnott said he is willing to work with City Council on the issue. In a previous interview, Sinnott said the city could soon launch a searchable database of delinquent garbage customers on its website, www.erie.pa.us.

But Sinnott also believes the city's options are limited. He said other cities wrestle with the same issue, including Scranton, which is trying to collect nearly $8 million in overdue garbage bills.

"Ultimately the lien is the mechanism we have right now," Sinnott said. "In an ideal world, everybody pays on time ... but until the law changes, that's what we have to deal with."

Erie Water Works has filed liens against delinquent garbage customers since 2006. Liens are filed after multiple notices are sent to property owners, and when the overdue bill is at least one year old.If the property is sold, the lien allows the city to collect its money from the proceeds.

Asked why he believes the problem persists, Vojtek said: "One of the factors is that other than liens, there is really no recourse for the city to address delinquencies for the garbage.

"Unlike water and sewer, where water can be turned off to encourage people to pay overdue bills, you can't do that with garbage," Vojtek said.

Vojtek also pointed out that city officials, citing health concerns, have said the city will not stop picking up garbage if an account is delinquent.

'We're stuck'

At least one local landlord also wants to see changes -- because he believes landlords are often scapegoats when it comes to the issue of garbage delinquencies.

"In our leases, our tenants are supposed to pay those bills," said Ray Wasielewski, co-owner of Raymac Inc. and Guvno Inc., two businesses that manage more than 50 rental units in the city, most of them on the city's lower east side.

According to Erie Water Works' records, Raymac's overdue garbage accounts total $17,645 and involve multiple properties. The overdue refuse bills for Guvno are even higher: $26,626, also for multiple addresses.

"What happens with tenants is sometimes they pay what they can and have to in order to keep their utilities on, and let other bills skate," Wasielewski said. "Then they move out, or I evict them, and we're stuck with this unpaid bill."

Wasielewski said he and his business partner, Erie lawyer David Mack, pay what they can on the delinquent accounts. They have also mailed letters to their tenants in recent weeks, asking them to pay their garbage bills "because the city is going to start cracking down," Wasielewski said.

Wasielewski said the situation "almost makes it not even worth being a landlord anymore. What it comes down to is the bills get so big, it's difficult to catch up."

Some local elected officials have also found that to be true.

Both Erie School Board member Mary Frances Schenley and Erie County Councilman Andre Horton have delinquent garbage accounts, according to Erie Water Works' records.

Schenley owes $1,098 for her home in the 2600 block of Jackson Avenue, according to Water Works records. Horton, elected to County Council in November, owes $1,736 for a house he owns in the 300 block of Reed Street, records show.

Schenley said she filed for bankruptcy a few years ago. As a school board member who deals directly with property taxes, Schenley said, she made keeping her own taxes current her first priority.

"If something else fell by the wayside, that was my second priority," said Schenley, who said she has made arrangements to pay her garbage bills. "They are (my) priority now, and I think my priorities are straight."

Horton also said he experienced financial difficulty that contributed to his overdue bills. Both Horton and Water Works officials said Horton is on a payment arrangement.

"I take full responsibility and I would encourage anyone else to go down and make financial arrangements as well," Horton said.

Fee increases

The average city resident saw garbage fees rise for 2014 from an average of $48 every three months, or $192 per year, to $55 every quarter, or $220 per year.

Sewer fees were also increased; the fee hikes generated $3.1 million in revenue for the city.

The city's Bureau of Refuse and Recycling is budgeted at $7.4 million for 2014, funded by residents' garbage fees. The city paid Erie Water Works $413,000 to handle billing and collections for both sewer and garbage fees, Vojtek said.

Sinnott said the increase, the first in four years, was necessary to keep up with rising employee costs and increased landfill tipping fees.

When City Council approved the 2014 budget, it included what's known as a sunset provision on the garbage fee increase.

Horan-Kunco and other council members said it was intended to push Sinnott's administration, council and other city officials to work collaboratively to find solutions to the delinquencies.

Erie's Norm Lasky, 75, hopes to see that happen. The Eliot Street resident said city officials should either "privatize the garbage (collection), or make it a tax.

"Add the $220 a year to my tax bill and get on with it," Lasky said. "Then if I don't pay, my house goes to a tax sale and I could lose my property. This is ridiculous."

KEVIN FLOWERS can be reached at 870-1693 or by e-mail. Follow him on Twitter at twitter.com/ETNflowers.